Mismatched, but Not Aware of It? How Subjective and Objective Skill Mismatch Affects Employee Job Satisfaction

Several studies suggest that skill mismatch reduces job satisfaction. To date, research has primarily investigated the impact of subjective skill mismatch; the impact of objective skill mismatch has less commonly been analysed and has generally only focused on mismatches in single skills. The present study addresses the question of whether both subjective and objective skill mismatch reduces employee job satisfaction. This article contributes to previous research by disentangling the effects of objective and subjective skill mismatch on job satisfaction based on a multidimensional measure of objective skill mismatch among employees in Germany. Based on the 2018 wave of the German National Educational Panel Study (NEPS) Adult Cohort, multiple linear regression models are herein estimated in order to investigate how subjective and objective skill mismatches affect people’s job satisfaction. The findings indicate that subjectively skill mismatched employees are less satisfied with their job than matched employees to a statistically significant degree, even when controlling for the objective mismatch. However, objectively skill mismatched employees do not show statistically significant lower job satisfaction compared to matched employees. Although there is considerable dissonance between objective mismatches and the subjective perception of being mismatched, the findings suggest that skill mismatch only reduces job satisfaction when employees perceive themselves to be mismatched.